India plans instant cross-border payment system expansion
The initiative reflects India’s commitment to utilising central bank digital currencies (CBDCs) for efficient transactions.
The Reserve Bank of India (RBI) is stepping up its efforts to expand its cross-border payments platform, which aims to offer instant settlements with trading partners. Agreements are already in place with Sri Lanka, Bhutan, and Nepal, and India is now looking to include the United Arab Emirates (UAE) in the scheme. This move reflects India’s growing interest in using central bank digital currencies (CBDCs) for more streamlined transactions.
India’s CBDC, currently focused on bank-to-bank operations, is being trialled for potential retail use, though no timeline has been confirmed. The nation has made significant progress with its digital currency programme, with over 5 million users participating in its ongoing pilot. RBI Governor Shaktikanta Das has also announced that offline solutions for the digital rupee are in the works, aimed at addressing connectivity challenges in rural areas.
At a global conference, Das outlined plans to make CBDCs more interoperable, enabling seamless transactions across different systems. However, concerns have been raised by privacy advocates and human rights activists, who warn that centralised digital currencies could threaten individual freedoms and data privacy.
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